Signa Apparel Announces New Credit Facility

Signal Apparel Co. Inc., New York, recently announced it had completed a new financing agreement
with BNY Financial Corp.The agreement provides Signal with a combined facility up to $98 million,
including a long-term own of $50 million (based in part on collateral pledged by Signals principal
shareholder group) and a revolving credit line up to $48 million. The revolving credit line may be
increased, subject to the lenders approval, up to $65 million at the election of the company and is
subject to continued compliance with the terms of the original facility.As part of the financing
agreement, BNY will provide up to $17 million of unsecured financing to Signal. In consideration
for the unsecured portion of the credit facility, Signal will issue 1,791,667 shares of Signal
Apparel common stock and warrants to purchase 375,000 shares of common stock priced at $1.75 per
share.